Oil is falling in early morning trade as worries about China's growth prospects are hurting energy demand as stocks worldwide falter. The Conference Board's economic index for Asia rose 0.3% in April, instead of the 1.7% increase reported June 15. Traders will be looking to the release of U.S. consumer confidence and home price data later in the day for further clues on global economic strength.
Conversely, gold is gaining ground as its attraction as a safe haven builds up momentum once again. A rising dollar against the euro, however, is seen to keep a lid on significant gains for the yellow metal.
At 0755 ET, Brent crude is down 2.2% at $75.86 a barrel, while light sweet crude is down 2.5% at $76.33 a barrel, and natural gas is down 0.9% at $4.69 a million British thermal units.
Gold is down 0.1% at $1,237.20 an ounce, while silver is 0.7% weaker at $18.59 an ounce, and copper is over 3% lower at $2.99 a pound.
Siemens AG ( SIEGN ) will acquire a 49% stake in Denmark's Dong Energy A/S for about $140.3 million, bolstering its foothold in offshore wind farms. The German conglomerate is currently seventh in the world in terms of installed capacity of turbines for the global windmill market.
In Asia, Japan's JX Holdings Inc (5020) said its Nippon Oil unit has finalized a deal to sell a 49% stake in its Osaka refinery to PetroChina Co. (0857). The refinery has a 115,000 barrels-a-day capacity.
In the mining sector, Rio Tinto plc ( RIO ) could vote down a proposed iron ore venture with BHP Billiton Ltd ( BHP ) due to terms of payment, according to the Royal Bank of Scotland. BHP has agreed to pay Rio $5.8 billion equalize its contribution of assets to their joint plan to combine mines, railroads, and workfoces in western Australia to save about $10 billion in cost.
Canada's Detour Gold Corp ( DGC ) said it will raise about $243.5 million through a bought deal financing to further its Detour Lake gold project.
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